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How can I manage my money efficiently?
I want to be able to go to college and live my life without having to stress to much about money. What are some pieces of advice and tips I could use to help reduce stress about money?
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4 answers
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Ben’s Answer
I'm not a financial expert so I would take this with a grain of salt and not as actual financial advice (seeking out a financial advisor can be really empowering). But I have invested since I was young and feel comfortable with my finances.
First, I recommend paying off any debt and starting an emergency savings fund in a high yield online savings account. Try to save up enough money to cover 3-6 months of your expenses.
Second, set up a regular investment (even if it's just $10 a month) in a 401K if you have a job with a company match program or a Roth IRA (you can invest in an IRA separate from an employer). Try to do this as soon as you can! Compound interest is the key to reliably making money over time off your investments. A lot of people will encourage you to try risky investment options such as individual stocks or crypto, but diversified investment funds with little management tend to do the best over time. It's about time in the market, so once you invest your money don't touch it until retirement or you could be subject to fees. Good luck and you're already doing well asking these kinds of questions!
First, I recommend paying off any debt and starting an emergency savings fund in a high yield online savings account. Try to save up enough money to cover 3-6 months of your expenses.
Second, set up a regular investment (even if it's just $10 a month) in a 401K if you have a job with a company match program or a Roth IRA (you can invest in an IRA separate from an employer). Try to do this as soon as you can! Compound interest is the key to reliably making money over time off your investments. A lot of people will encourage you to try risky investment options such as individual stocks or crypto, but diversified investment funds with little management tend to do the best over time. It's about time in the market, so once you invest your money don't touch it until retirement or you could be subject to fees. Good luck and you're already doing well asking these kinds of questions!
Updated
Liam’s Answer
Save. First and foremost, get money behind you. Don't owe money and live within your means. All of the boring answers are the right answers.
Understand how money works and treat $5 in the bank the same you would treat $5,000,000 in the bank. Work on your financial literacy and make the best decisions for yourself you can.
https://www.khanacademy.org/college-careers-more/financial-literacy
https://www.youtube.com/live/Murfl1v-p5c
Understand how money works and treat $5 in the bank the same you would treat $5,000,000 in the bank. Work on your financial literacy and make the best decisions for yourself you can.
Liam recommends the following next steps:
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Robert’s Answer
Howdy!
The best advice I have been given as well deployed in my life is paying off any debt as fast as possible with the snowball concept. Focus on one debt at a time so can pay off debt quickest. Secondly, creating a safety fund of 3-6 months of expenses. Lastly, at minimum 15% of your income should be going into savings/investments at the youngest age possible so you have compounding growth. If applicable in your situation utilize a Roth account as early as possible as well.
The best advice I have been given as well deployed in my life is paying off any debt as fast as possible with the snowball concept. Focus on one debt at a time so can pay off debt quickest. Secondly, creating a safety fund of 3-6 months of expenses. Lastly, at minimum 15% of your income should be going into savings/investments at the youngest age possible so you have compounding growth. If applicable in your situation utilize a Roth account as early as possible as well.
Updated
George’s Answer
Some very important questions first...
1. Why are you going to college?
2. Do you have a career path in mind?
3. Do you need a 4-year+ degree for your intended career path?
Almost ALWAYS it's financially smart to start college at a local community college, then later transfer to a 4-year university to get the bachelor's/master's degree you "need".
The FAFSA is key to accessing loans, grants, and work-study programs.
WORK HARD and keep your expenses low. Your priority is getting the education you need for the career path you'd like.
Debt is an anchor that drags down the future you. Keep debt as low as possible.
1. Why are you going to college?
2. Do you have a career path in mind?
3. Do you need a 4-year+ degree for your intended career path?
Almost ALWAYS it's financially smart to start college at a local community college, then later transfer to a 4-year university to get the bachelor's/master's degree you "need".
The FAFSA is key to accessing loans, grants, and work-study programs.
WORK HARD and keep your expenses low. Your priority is getting the education you need for the career path you'd like.
Debt is an anchor that drags down the future you. Keep debt as low as possible.